ANZ Bank chief calls for debate on property investmentThe CEO of the Australian division of ANZ Bank says that he is concerned by obsessive investment in property and suggests that some investors would be better off putting their money into other assets. Paul Chronican says that some investors are acting as though prices will only go up with their optimism fuelled by low interest rates and rising prices. Chronican says that the favorable tax arrangements for those investing in property are also part of the debate that needs to take place. With home loans for non-resident owners rising fast many analysts are becoming concerned of the potential over-exposure of real estate investors and how that could compromise the wider economy.
Perth downturn says REIWA
Perth is showing signs of a slowing property market. Preliminary figures from the Real Estate Institute of WA show that the September quarter saw a decline in the growth of sales and house prices. Its president David Airey is predicting a slowdown for the city next year, telling The West Australian that sales turnover is at its lowest rate for two years, listings are up and rents are falling. Other analysts have suggested that the figures are not unusual for the time of year.
Sydney sees change in development requirements
As with many major cities in the world Sydney is seeing a shift in the requirements of residents. Increasingly homeowners want to live in inner city complexes which provide affordable housing close to small-scale supermarkets and transit links. Where once people wanted to travel to larger, out-of-town shopping centres and supermarkets they now want to be able to walk to get their groceries. There is also growing demand for property closer to fast transit links to the city center. Brisbane is also following the trend.
Brisbane demand pushes flood-affected property prices higher
Brisbane’s suburbs that were badly hit by flood water in 2011 have seemingly recovered not just in terms of rebuilding but in house prices. Reports suggest that the city’s flooded suburbs have recovered faster than expected and have mostly reached prices that are above pre-flood levels. Properties have been repaired in line with new rules to better protect them from future flooding. Experts say the recovery and growth in prices is at a sustainable level rather than the inflated rate seen in some other areas.